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CMA updates guidance on unfair contract terms

On 31 July 2015, the Competition and Markets Authority (CMA) published guidance (CMA37) on the unfair contract terms provisions in the Consumer Rights Act 2015 (CRA). The CRA consolidates the consumer protection provisions in Unfair Contract Terms Act 1977 (UCTA) and the UTCCRs. The CMA guidance considers the changes brought in by the CRA which comes into effect on 1 October this year, in particular, the requirement for unfair contract terms and notices to be fair. CMA37 supersedes the general unfair contract terms guidance originally issued by the OFT.

The new guidance is intended to help businesses understand what makes terms and notices unfair, what risks they can face from using certain wording and top tips on how to ensure terms and notices are fair and clear. The focus is on avoiding disputes with consumers arising from unfair terms by avoiding legal jargon in contracts and dealing with consumers ‘openly and fairly’.

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